Laundromats have a substantial return on investment, averaging 20-35% in the first year. Because an investment in a laundromat is relatively safe for new business owners, people from all walks of life start new laundry businesses. However, new business owners need to understand the challenges that come with starting or owning a laundromat business before they make the commitment, or face unexpected hurdles along the way.
3 Things Every New Laundromat Business Owner Should Consider
1. Scale Your Business Intelligently
Many business leaders believe that the quickest way to make more money is to open multiple stores at once. However, it’s imperative to have a foundation of success with one store before considering expansion. Novice laundromat owners fail to realize that multiple stores mean higher overhead, increased workload, and less time for improvements at each store.
Successful laundromat owners typically wait several years between opening additional stores. This time allows owners to increase brand awareness and earn enough revenue and experience from the first location to open an additional store.
Laundry management software can provide key business insights around laundromat performance, such as real-time revenue reports, individual machine analytics, and the ability to track the busiest and slowest times to help owners make smart decisions about price changes and special promotions. Owners can use this valuable data to learn and grow their laundromat business before considering a second or third location.
2. Secure Adequate Financing
Financing is one of the most significant challenges of opening a laundromat. Inexperienced laundromat owners will calculate the amount they need to open a business without factoring the additional costs associated with starting and running a store.
In addition to investments in commercial laundry equipment, these costs can include quarters for the coin exchange machines, staffing, utilities, supplies and repairs, and more. A lack of additional funds can force laundromat owners into a spiral of increased debt over time.
Before making a decision, owners must ensure they have the resources to run the laundromat and turn a profit without taking on too much debt. Additionally, laundromat financing services can be an excellent resource for additional support. These private organizations can help create a financing plan that meets a new owner’s needs to set the foundation for success.
3. Invest in Marketing
Customer acquisition and retention are critical to owning a laundromat business. First-time owners may assume that customers from the neighborhood will simply appear at the doorstep, but some legwork may be required shift consumers from their usual laundromats. Marketing is a critical investment that laundromat owners need to consider well in advance of the store’s grand opening.
Laundromat marketing is an effective way to attract and retain a healthy customer base. Marketing costs during the first year are typically higher than in years to follow, but Laundrylux recommends allocating a healthy marketing budget each month. These efforts will ensure new customers keep coming through the door as the community grows.
Laundrylux offers laundromat creative services for marketing to provide signage, advertisement creatives, interior design support, templates for ads, postcards, in-store signs, and much more. The additional support laundromat owners receive through this partnership can help set laundromats apart from the competition and better engage new and returning customers.
We Make Owning a Laundromat Simple
Laundrylux is a trusted laundromat partner that helps new business owners overcome the challenges associated with laundromat ownership. Working with real industry experts, new and experienced investors can leverage Laundrylux’s private financing, real estate, and creative services to quickly realize returns on investment.